SOLUTION OvervIew

SAS® DATA MINING SOLUTIONSFast, scalable predictive analytics for the enterprise

• Testing and validation of the cham-pion model to ensure that the model generates output as expected and generalizes well when applied to new data.

• Deployment of the model and results into applications and databases to optimize business processes and improve business decisions.

• Monitoring the model performance to ensure the model is predicting well and does not need recalibrating.

SAS offers the most comprehensive data mining solution, taking you from raw data to accurate, business-driven analytical models with a seamless, effi-cient process. You can create highly accurate predictive and descriptive models to help your organization under-stand not only what has happened, but what will likely happen next.

SAS wraps a powerful platform of advanced predictive analytics with:

• Data integration technologies for cleaning and organizing the input data.

• Premier enterprise business intelligence systems that convert the information hidden in your data into knowledge of cause and effect between parameters that impact today’s dynamic world... the relation-ships and patterns that lead to proac-tive decision making.

• Services and training that enable you to quickly reap the benefits of your data mining endeavors.

whether it’s used to drive new busi-ness, reduce costs or gain the compet-itive edge, data mining is a valuable asset for every organization. By using data mining techniques to analyze the data that is accumulating and filling vast data warehouses, organizations can harness more insight from their large data stores to drive proactive decision making. SAS data mining software can surface patterns and trends in your data that you may never have thought to look for.

Data mining is the process of selecting, exploring and modeling large amounts of data to uncover previously unknown patterns with speed and scale. Predictive analytics is the process of applying quantitative techniques to uncover patterns and relationships in data that can help business people and researchers understand historical trends and predict future outcomes. Predictive analytics and data mining typically involve:

• Data preparation to fix errors, merge tables and reformat data as needed for model creation.

• exploratory data analysis to discover relationships and anomalies.

• variable transformation enrichment and selection to help better focus the modeling process.

• Model building using competitive algorithms to search for a combina-tion of data that reliably predicts the outcome.

Delivering insights that pay off in smarter business decisions

Challenges• Inefficient marketing

campaigns.

• Difficulty measuring customer value and predicting profitability.

• Unable to maximize cross-selling opportunities.

• High customer attrition/churn.

• Stagnant or declining revenue and profitability.

• Need to detect and deter fraud.

• Can’t make credit risk decisions fast enough.

• Inability to understand and predict customer needs, motivations and behaviors.

• rising costs for warranty services; difficulty predicting service and parts needs.

“ Data mining is not a theoretical

exercise. It’s the process of mining rich

business data for golden opportunities.

It delivers insights that pay off in

smarter business decisions.”

James Kobielus Principal Analyst, Current Analysis

SAS data mining reaches across all industriesBecause data mining technologies and predictive analytics bring value to all industries, these techniques are widely used around the world and usage con-tinues to grow.

• Credit card, financial services, insurance and telecommunication companies use SAS data mining to detect and reduce fraud, measure credit risk, maximize cross-selling, optimize marketing campaigns and identify the most profitable business strategies.

• Governments and the public sector use SAS data mining to improve service and performance, detect fraud and waste and detect criminal activities and patterns.

• Healthcare providers use SAS data mining to predict the effectiveness of surgical procedures, medical tests and medications, and to improve patient services.

• Manufacturers use SAS data mining to identify factors leading to reduced quality and failures in production, as well as to optimize parts, service plan-ning and distribution.

• Retailers use SAS data mining to assess the effectiveness of coupons and special events, predict which offers are most appropriate for dif-ferent consumers, determine which products to stock where, and to build brand loyalty.

• Transportation companies use SAS data mining to predict how customers will respond to price changes and new services, which customers are at risk of leaving for a competitor and how much revenue will be generated by new locations.

A world of success

SAS customers represent many of the most innovative and successful organi-zations in the world:

• 96 of the top 100 companies on the 2006 Fortune Global 500 List.

• More than 40,000 business, govern-ment and university sites rely on SAS.

• Organizations in 110 different coun-

tries use SAS.

visit www.sas.com/success/index.html to read how leading organizations around the world are using SAS to harness their data and generate new insights for improved decision making.

nSolutionSAS offers the industry’s most comprehensive data mining solution based on an integrated platform for delivering better an-swers, faster. Our solution enables organizations around the world to:

• Understand and predict customer needs and behavior.

• Measure customer profitability and value.

• Increase response rates for marketing campaigns.

• Improve cross-sell/up-sell programs.

• reduce customer attrition and churn.

• reduce fraud.

• Detect criminal activities and patterns.

• Minimize credit risk.

• Set pricing strategies in a highly competitive market.

• Optimize sales revenue.

• Improve quality control processes.

• Develop new products.

• Improve program performance and brand planning.

• Identify optimal site locations.

• Identify adverse drug effects.

Achieve an efficient, integrated data mining process that identifies trends, opportunities and threats

SAS provides GUI-driven, Java-based data mining products that support all of the steps necessary to address busi-ness problems in a single, integrated solution, as well as code-based prod-ucts for legacy programmers who enjoy full control of each syntax statement. The GUI-driven products support the integration of customized SAS code, enabling organizations to leverage leg-acy work and years of accumulated experience.

Build more models faster with easy-to-use interfaces and a unique workflow environment

SAS data mining interfaces eliminate the need for manual coding and dra-matically shorten model development and maintenance time. Yet they are not black box solutions. with SAS you can add your own proprietary business sce-narios and embed custom SAS code into your model flows. A text mining interface reduces text mining time for both business analysts and statisticians and makes it easy to drill down into tex-tual documents to gain deeper insight.

Derive new insights about your customers and organization with SAS’ powerful predictive analytics

A superior data mining toolset provides modern analytical algorithms, such as decision trees, neural networks, time series mining, regression and heuristics for quantitative analysts addressing ad-hoc issues as well as enterprise archi-tects who need to deploy model scoring logic into decision support systems potentially using a grid-supported, client-server architecture.

Spot trends and predict new opportunities by adding text to the mix

Analysis of information contained in cus-tomer letters and call center notes can uncover actual motivating factors that result in customer dissatisfaction regard-ing services or product desires. SAS Text Miner provides a full range of pre-dictive modeling tools that can unearth opportunities for discovering the what and the why, all within the integrated SAS environment.

Surface business information easily and share results through the unique model repository

Numerous integrated assessment

features enable you to compare results

of different SAS enterprise Miner

modeling techniques in both statistical

and business terms within a single,

easy-to-interpret framework. SAS

enterprise Miner projects support the

Predictive modeling for success—the benefits of SAS® data mining solutions

AXA Equitable finds success in SAS data miningBusiness issue Build a holistic view of customers for analysis and effective client management.

Solution SAS software provides model-ing and statistical capabilities for strategic cross-selling efforts.

Benefits Significant increase in sales without additional IT staff.

“ SAS Enterprise Miner is so

scalable that it allows us to build

our models more efficiently. And the

models are more predictive than

anything we had originally.”

Melissa Corso vice President of Customer Analytics AXA equitable

collaborative sharing of modeling

results among quantitative analysts.

Models also can be imported into the

SAS Model Manager repository for

sharing with scoring officers and

independent model validation testers.

Get faster results through an automated model scoring process

Scoring is the process of applying a model to new data and is the resulting action of many data mining endeavors. SAS enterprise Miner guides you through the entire data mining process and produces complete scoring code for all stages of model development. The scoring code can be deployed across your enterprise with SAS, on the web or directly in relational databases. The result is faster implementation of your data mining results.

Reduce the time to create, manage and deploy models into production

Model deployment is the final and most important phase in which the rOI from the entire data mining process is real-ized. errors and time delays in the deployment of models have a signifi-cant impact on the rOI of predictive analytics, which is why a standard pro-

cess for moving models from develop-ment to the production environment is very important. SAS Model Manager guides users through a repeatable pro-cess for registering, testing and validat-ing models. Models can be monitored during their deployment to capture model performance decay as early as possible and to trigger a model replace-ment process. The proper management of champion and challenger models enables a quick replacement of cham-pion models in production, as well as informed decisions on when to recali-brate models stored in the repository.

Leverage all your computing power for faster, more accurate analyses

SAS delivers enterprise-class grid com-puting capabilities that enable SAS applications to automatically leverage grid computing to run faster and take optimal advantage of computing resources. Production models exported from SAS Model Manager can be deployed via the SAS Data Integration Server high-performance scoring engine. The scoring process can be scheduled and executed in grid using SAS Grid Manager.

nSASpositionedinthe Leaders’Quadrantfor CustomerDataMining

SAS is positioned in the Lead-ers quadrant in Gartner Inc.’s Customer Data Mining 2007 Magic Quadrant. (Source: Gartner, Inc., “Magic Quadrant for Customer Data Mining, 2007” by Gareth Herschel, May 4, 2007. ) According to the Gartner report, “Leaders are vendors whose performance excels in the customer data mining market.”

Hundreds of companies glob-ally, including 1-800-FLOw-erS.COM, American Honda Motor Co., DIreCTv, The Dow Chemical Co., First Citizens Bank, The Ford Motor Co., Hartford Life, Loyalty Manage-ment UK, Swisscom and The world wildlife Fund, use SAS data mining tools to support CrM initiatives.

nTop-rankeddataminingIntelligent Enterprise readers voted SAS as Best Data Mining Toolset vendor for the third consecutive year (Source: Intelligent Enterprise, January 1, 2007). value, reliability and broad applicability are the hall-marks of the Intelligent enter-prise readers’ Choice Awards, the annual pick of preferred vendors.

“ SAS Enterprise Miner and SAS Text Miner are worth their weight in gold. They’ve paid

for themselves many times over by highlighting cost and quality issues, leading to

valuable improvements at Louisville hospitals and worldwide.”

Dr. Patricia Cerrito

University of Louisville

An integrated Enterprise Intelligence Platform

Like all SAS software, SAS’ powerful data mining solutions are based on the SAS enterprise Intelligence Platform, which provides an integrated framework for creating and sharing enterprise intel-ligence—all managed from a single point of control. The platform provides inte-grated components for data integration, intelligent storage, analytics and busi-ness intelligence. A shared metadata foundation across all SAS products and solutions ensures consistency of data, so everyone in your organization receives the same version of the truth.

SAS® Enterprise Miner™

SAS enterprise Miner offers a powerful, complete data mining solution with unparalleled model development and deployment options, and extensive integration opportunities into your data warehouse and business decision- making processes. It combines a rich suite of integrated data mining tools with ease of use, empowering users to explore and exploit corporate data for strategic business advantage. It streamlines the data mining process, enabling business analysts and data miners to create highly accurate predic-tive and descriptive models based on analysis of vast amounts of data from across the enterprise.

SAS enterprise Miner includes an extensive suite of data mining capabili-ties, including decision trees, neural networks, regression and clustering capabilities, heuristics and the latest

statistical algorithms for finding patterns and predicting outcomes. with an automated and intelligent method for tuning predictive models, SAS enterprise Miner selects the best model among many different types and complexities. It focuses on building the least complex model with the most predictive power. An added advantage is the software’s ability to incorporate proprietary busi-ness scoring engines or in-house developed score code under one umbrella platform, enabling organiza-tions to better track and manage all analytical models.

For those wishing to analyze unstruc-tured data or automate their credit scoring processes, SAS offers two complimentary products that can be added on as nodes inside the SAS enterprise Miner system: SAS Text Miner and SAS Credit Scoring for SAS enterprise Miner.

SAS® Text Miner

Integrating text-based information with structured data enriches your predictive modeling capabilities and provides new stores of insightful information for driving your business and research initiatives forward. Text mining supports a wide variety of applications, such as categoriz-ing huge collections of call center data, web text and blog analysis, finding pat-terns in customer feedback or employee surveys, detecting emerging product issues, analyzing competitive intelligence reports or patent databases, and classify-ing reports and company information by topic or business issue.

nTheSASDifference• Data access, management

and cleansing are seamlessly integrated with SAS data mining solutions making it easier to prepare data for analysis.

• Scalability. with multithreaded algorithms and support for multiprocessing and grid computing, SAS reduces execution time and uses hardware resources most efficiently.

• The most powerful predictive analytics available. Smart defaults allow business users to produce models quickly, while advanced statisticians have the option to tweak details and embed their own algorithms into their model flows.

• Zero-footprint client and collaborative access to data mining projects. The Java client interface enables fast and maintenance-free dis-tribution of the SAS data mining solution throughout large organizations. Data mining projects can be shared between analysts across different units and regions.

• Robust variable selection and data modification tools. Improved data leads to better modeling and more reliable results.

Implement with ease and predict with confidence

SAS Text Miner enables users to easily discover and extract knowledge from text documents. This makes possible the exploitation of time-critical informa-tion, such as warranty defect reports, resulting in faster corrective actions and potentially large savings. It also elimi-nates the need for manual processing of reports and customer feedback, result-ing in additional savings as well as improving the quality of existing data mining models.

Credit Scoring for SAS® Enterprise Miner

Banks, financial institutions and insurance companies develop and track credit scores based on rigorous data mining investigations. SAS Credit Scoring for enterprise Miner enables banks and financial services organizations to inter-nally develop, validate, implement and report on “points based” credit score-cards faster, cheaper and more flexibly than credit outsourcing alternatives. It provides in-house model development, integrated model monitoring and flexible model deployment.

SAS® Enterprise Miner™ Desktop for Windows

SAS empowers both the big business customers as well as the small indepen-dent consultant with a data mining workbench that runs entirely within the confines of a windows PC. The same interactive interface of SAS’ client-server product is available on a single DvD that is easily installed.

SAS® Model Manager

SAS Model Manager is a new product designed for the selection, mainte-nance and continuous enhancement of predictive and descriptive models for operational decision making. It helps to organize and track the tasks of model creation and development, model verifi-cation, comparative model performance benchmarking, and model deployment in a production environment. It sup-ports the process of tracking models through each stage of the analytical model life cycle by creating and manag-ing rich metadata on each model. In addition to project management and version control capabilities, it provides model comparison and profile reports and model-monitoring performance views. A thin Java client enables easy sharing of information and tasks across departments and ensures fast and fully documented movements of analytical models through the life cycle.

Other SAS® analytic products

SAS provides a robust suite of advanced analytic products, many of which have been used for decades to perform complex numerical calculations. Large government laboratories, leading research institutions and competitive business organizations in a wide variety of industries across the globe have cho-sen SAS for the breadth and depth of our statistical offerings. with the addition of SAS Model Manager, predictive mod-els created with SAS code-based soft-ware can be centrally managed to efficiently deploy insights and leverage accumulated years of experience.

nServicesandTrainingSAS offers a free web-based data mining tutorial that has been popular with those who want to quickly become familiar with the SAS enterprise Miner interface. For more information, visit www.sas.com/apps/elearning/ elearning_details.

SAS customers receive a full suite of technical support services at no extra charge. In addition, our online Customer Support Center provides 24/7 access to a wealth of resources. Knowledge sharing is continuously available through seminars, webcasts and an expansive selection of training courses.

Also to support your analytical needs, SAS offers a variety of consulting services, including discovery workshops, installation and configuration services, data and text mining modeling servic-es and ongoing customer care. expert consultants are available to share their vast knowledge and experience to help you use proven approaches to formulating certain business problems.

For more information, visit www.sas.com/consult/usconsult/analyticalofferings.pdf

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AboutSASSAS is the leader in business intelligence and analytical software and services. Customers at 43,000 sites use SAS software to improve performance through insight from data, resulting in faster, more accurate business decisions; more profitable relationships with customers and suppliers; compliance with governmen-tal regulations; research breakthroughs; and better products and processes. Only SAS offers leading data integration, storage, analytics and business intelligence applications within a comprehensive enterprise intelligence platform. Since 1976, SAS has been giving customers around the world THe POwer TO KNOw®.

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